CMA CGM highlighted today, August 19, that it took delivery of 1,000 twenty-foot containers manufactured in Vietnam. It was the first time the French shipping company had sourced containers built in Vietnam.
While a small step, it was still a symbolic move in the ongoing efforts to break China’s stronghold on the segments of the shipping industry. Estimates show that between 85 and 95 percent of all containers are manufactured in China. A ranking of the top container manufacturers prepared by Container Xchange, an equipment matching platform for boxes, shows that four of the top five box manufacturers are based in China.
CIMC (China International Marine Container Group) is the largest manufacturer created by COSCO, and now with 11 factories able to churn out roughly two million boxes annually. It is closely followed by Dong Fang International Container Group (DFIC), which says it has a capacity to build 1.6 million boxes annually.
Then commissioner of the Federal Maritime Commission, Carl Bentzel, studied the container manufacturing market for the FMC. In a 2022 report, Bentzel concluded that it was not accidental that the Chinese had taken control of the container manufacturing market, much like they have also taken control of the manufacture of large shoreside cranes used to transfer boxes in ports.
The report noted the critical role of containers and challenges that emerged in 2020 and beyond during the pandemic and the surge in shipping. Carriers were fighting for every box while Bentzel concluded China had been slow to ramp up production. He raised the question of possible price manipulation among other concerns.
“It is clear to the author (Bentzel) that the issue of Chinese state control of the manufacture of containers and chassis issue needs much closer review. The current supply chain disruption provides illumination on the larger issues related to monopolistic control of critical elements needed to facilitate international trade in containers,” the report concluded.
CMA CGM, in announcing that it had taken delivery of the 1,000 containers, positioned it as part of the group’s ongoing expansion in Southeast Asia. The boxes were manufactured by Hoa Phat Group, which is billed as the largest container manufacturer in Vietnam. CMA CGM said the boxes would strengthen its equipment availability, shorten turnaround times, and optimize supply chain efficiency.
Vietnam is looking to take advantage of the opportunities it sees emerging in the market. It has launched shipbuilding and other services such as container manufacturing. It is also expanding its ports and positioning them as a possible transshipment location, creating new supply chains for Southeast Asia and beyond.
source: www.maritime-executive.com
